Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 11, 2026 · Beat 1 of last 7 quarters
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Energy Vault's record 1.25 GW hyperscaler agreement and backlog growth to $2B underscore the accelerating demand for behind-the-meter power solutions to support AI data center buildout. The company's focus on speed-to-power and integrated generation+storage platforms positions it as a key enabler for hyperscale deployments, potentially driving further contract wins and capacity expansion.
Energy Vault reported Q2 revenue of $17.4M, up 104% YoY, with GAAP gross margin of 31% and adjusted gross margin of 38.6%. Backlog grew to ~$2B, driven by the 1.25 GW hyperscaler agreement and other wins, with 60% tied to owned-and-operated assets. Cash increased to $148M, marking the sixth consecutive quarter of growth. The company also highlighted progress on its powered land portfolio, including the Crusoe AI campus in Snyder, Texas, and the Mesa del Sol project in New Mexico.
Management raised full-year 2026 revenue guidance to $270M–$310M (from $225M–$300M), narrowed GAAP gross margin to 20%–25% (from 15%–25%), and lifted year-end cash guidance to $160M–$200M (from $150M–$200M). They expect a large Q4 revenue ramp, with the majority of second-half revenue recognized in Q4, and see backlog growing to nearly $3B by year-end. The 1.25 GW hyperscaler deal will contribute a portion of revenue in Q4 with the majority in 2027, and management expects to expand this behind-the-meter modular platform with the same partner and others. They also plan to grow the owned-and-operated pipeline toward ~5 GW and ~$2B annualized EBITDA by 2030, while continuing to optimize capital structure and reduce cost of capital.
“The strategy we've been describing is now in full translation mode into some of the results we've just seen. That means stronger growth, higher margins, increasing cash, a substantially larger backlog, and importantly, greater visibility into both near-term revenue and long-term recurring earnings.”
on Strategy execution
“We recently announced a 1.25 gigawatt agreement, which is our largest contract in the history of the company, to support an integrated power generation and storage solution for hyperscale data centers.”
on Hyperscaler agreement
“We intend to extensively use project-level financings, including tax equity, and use corporate capital where -- only where ”
on Capital discipline
On the 1.25 GW hyperscaler agreement, what's the revenue split between 2026 and 2027, and is the margin profile consistent with the 20-25% guidance?
A portion of the $500M-$600M will be recognized in Q4 2026, with the majority in 2027. Margins are expected to be at the higher end of the 20-25% range, and we expect that to continue into 2027.
Where do you expect the highest incremental value to come from as backlog grows from $2B to $3B — traditional BESS, powered land, or AI infrastructure?
We remain focused on building, owning, and operating assets for long-term recurring revenue. Powered land and powered shell solutions, along with owned battery solutions, are expected to deliver the most value over time. The 1.25 GW deal is build-and-transfer, but we are selective and focused on larger customers and projects.
What are the implications of the recent Texas data center moratorium on your business and the timing of revenue recognition for the 1.25 GW announcement?
We have factored the moratorium into our planning and guidance. The 1.25 GW solution is behind-the-meter and does not rely on the grid, so execution for the second half and next year is unaffected. We continue to monitor the situation.